Cryptocurrencies like Bitcoin have an image problem, especially regarding the energy consumed during mining. To some people, Bitcoin is only for the rich, but the reality is that Bitcoin is readily available to anyone worldwide. Although some countries don’t allow the mining and use of Bitcoin, many countries, including third-world countries, are open to the idea of Bitcoin.
When Satoshi introduced Bitcoin, their primary intentions were to reduce the costs involved in money transactions and give equal chances to all by curbing inflation. They intended to bank the unbanked, mainly found in third-world countries. The invention of Bitcoin has turned the world around in the last two decades. There has been a lot of buzzes about how Bitcoin has the potential to shake the world’s economy and bring a lot of change to it. The world’s economy has undergone several changes since the invention of Bitcoin, with its price moving from less than a dollar and getting to its highest value in 2021 at $61,000. Although there has been a considerable fluctuation in the price, it remains way higher than the traditional stores of value.
Whether Bitcoin helps eradicate poverty is a question that elicits many mixed reactions and opinions among various people. The reality is that Bitcoin has helped many unbanked people in getting banked. Bitcoin has the potential to bring economic and social growth worldwide by enabling more accessible access to financial services. Unlike traditional centralized exchanges, decentralized finance facilitates the transfer of money globally at cost-effective charges, among other uses. Such uses enable the unbanked to receive funds and save effectively.
Bitcoin Isn’t All Bad
Bitcoin might have a problem with the amount of energy it consumes during the mining process, but that doesn’t make it completely bad because it has more to offer in terms of benefits. The mining process requires powerful and expensive rigs that consume a lot of energy. A single mining activity uses power equivalent to 50 days of energy that could power several US households. The amount of energy the process requires could power out a whole region and have hazardous environmental effects.
Aside from the energy crisis associated with Bitcoin, It helps to bank the unbanked. Many people from third-world countries are benefiting from Bitcoin and other cryptocurrencies. Anyone can own bitcoin and access a Bitcoin wallet to store the crypto.
You require to sign up for a crypto wallet that you use to receive and store Bitcoin. Unlike banks with many formalities, you can quickly transfer crypto from one user to another. Relatives and friends abroad can quickly transfer funds to their families on the other side without waiting for days or going through many formalities. With crypto, you can use your crypto wallet for trading and watch its value grow. With a site like bitcoin 360 ai you can increase your money through crypto trading. It is better than keeping your money at home or in a fixed deposit account.
In other scenarios, having a bank account comes with many regulations, such as account operation balance, which limit the poor. With Bitcoin and other cryptos, anyone can own a wallet, receive or deposit funds and transfer them to anyone in the network. That way, it helps eradicate poverty by giving the rich and poor equal chances, and all participants can access crypto investment opportunities. Crypto might not be entirely the desire of all, but it has done better in giving opportunities to the poor and the unbanked, a step toward eradicating poverty.